ONE places first-ever methanol fueled vessels order

17th January 2024

ONE first-ever methanol fueled vessels

Ocean Network Express (ONE), the world’s sixth largest container line formed in 2017 by the merger of three Japanese shipping giants, combining Mitsui OSK Lines, Nippon Yusen Kaisha, and Kawasaki Kisen Kaisha, the top three shipping lines in Japan, into one liner unit. This bold move positions ONE as a frontrunner in the quest for sustainable shipping, potentially influencing both competitor strategies and the broader environmental landscape.

The Jeremy Nixon-led container line has signed a significant deal for twelve 13,000 twenty-foot equivalent unit (TEU) methanol dual-fueled vessels. These behemoths, split evenly between Jiangnan Shipyard and Yangzijiang Shipbuilding, are slated to grace the oceans starting in 2027. This groundbreaking commitment underscores ONE’s ambitious Green Strategy, aimed at building a sustainable supply chain for the future and achieving ambitious decarbonization goals.

Why the switch to methanol? This alternative fuel presents a compelling proposition compared to traditional heavy fuel oil (HFO). Methanol boasts significantly lower sulfur and nitrogen oxide emissions, contributing to cleaner air and reduce the carbon foot print. The fuel has been widely embraced by more than just liner shipping. Last year saw a dramatic change in the swift adoption of alternative fuels in shipping, with methanol-powered engines emerging as the most preferred option.

According to the most recent data from DNV’s Alternative Fuels Insight platform, orders for ships powered by methanol saw a significant spike in 2023, reaching 138, overtaking LNG for the first time. With 130 orders, chilled fuel arrived in second.

The shipping industry as a whole will probably be affected by ONE’s bold decision. Rivals are keeping a careful eye on this development, and if these methanol-powered giants prove successful, others might be motivated to follow suit. As a result, there may be an increase in demand for green methanol production infrastructure, which would hasten the industry’s switch to sustainable fuels.

Despite these challenges, ONE’s commitment to methanol serves as a beacon of hope. By investing in this promising technology, the company is not only shaping its own future but also influencing the trajectory of the entire shipping industry.